Economy Grows 3.7pc In FY26, Misses Official Target

Pakistan’s economy recorded a growth rate of 3.7 percent during the fiscal year 2025-26, marking the fastest pace of economic expansion in four years, according to official figures released by authorities.

Despite the improvement, the growth rate remained below the government’s annual target, highlighting ongoing economic challenges and structural constraints facing key sectors of the economy.

Officials said growth was supported by improvements in services, industry, and economic activity, while stabilization measures and policy reforms contributed to a more favorable business environment.

Economic experts noted that inflationary pressures, fiscal limitations, and external sector challenges continued to affect overall performance, preventing the economy from fully achieving its projected growth objectives.

The latest figures are being viewed as a sign of gradual economic recovery following a period of financial uncertainty and macroeconomic adjustments.

Analysts say while the growth rate reflects positive momentum, sustained reforms and investment will be necessary to maintain economic expansion and achieve higher growth targets in the coming years.